Intuitive Surgical Inc

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ISRG : NASDAQ : Health Care
$717.62 -0.15 | -0.02%
Today's Range: 714.54 - 724.00
Avg. Daily Volume: 247,400
09/29/16 - 12:32 PM ET

Financial Analysis


INTUITIVE SURGICAL INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. INTUITIVE SURGICAL INC is extremely liquid. Currently, the Quick Ratio is 5.34 which clearly shows the ability to cover any short-term cash needs. ISRG managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 36.61% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)670.1586.1
EBITDA ($mil)0.0201.5
EBIT ($mil)249.8180.4
Net Income ($mil)184.5134.5


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)2183.81561.5
Total Assets ($mil)5780.84354.5
Total Debt ($mil)0.00.0
Equity ($mil)5181.53792.7


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin70.2769.54
EBITDA Margin0.034.37
Operating Margin37.2830.78
Sales Turnover0.440.52
Return on Assets11.7311.52
Return on Equity13.0813.23
Debt Q2 FY16 Q2 FY15
Current Ratio5.784.56
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)38.537.0
Div / share0.00.0
EPS4.713.56
Book value / share134.58102.51
Institutional Own % n/a n/a
Avg Daily Volume258838.0314058.0

Valuation


BUY. INTUITIVE SURGICAL INC's P/E ratio indicates a discount compared to an average of 44.20 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 5.34 indicates a significant premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 5.05. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, INTUITIVE SURGICAL INC seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ISRG 40.71 Peers 44.20   ISRG 29.68 Peers 28.91

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ISRG is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ISRG is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ISRG 29.89 Peers 25.07   ISRG 1.11 Peers 0.84

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ISRG is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ISRG trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ISRG 5.34 Peers 5.05   ISRG 31.44 Peers 23.13

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ISRG is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ISRG is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ISRG 10.93 Peers 14.71   ISRG 11.34 Peers 18.35

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ISRG is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ISRG significantly trails its peers on the basis of sales growth

 

 

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